What is Going on Over There? –Three Online Resources for Global Market Intelligence

Data

CL Headshot 12-08 E-Mail

by Christopher Lynch

Exporters have to be customer centric. But, in addition to customers, exporters need to be aware of economic, political or social trends that could affect demand for the products or services. A change in the exchange rate from political decisions by a populist government can wipe out a market. A decision to begin negotiations on a free trade agreement can signal new market opportunities.

The exporter doesn’t have time to be the political analyst or economist – but there are some great online resources that I recommend for their accuracy and timeliness:

  1. The Economist Intelligence Unit:  The EIU, a subsidiary of The Economist magazine, compiles economic and political data on every country around the globe. Because it is data driven, it is able to produce up-to-date analyses of what is going on in a market – macroeconomic data, key demographic and social trends and political outlook. I usually refer to the monthly reports for the best information, although the annual ones cover the country in much greater detail. I met regularly with the EIU country analysts when I was an international economist at various US Embassies and the analysts are competent and highly professional. My only caveat is that, being based in London, they view the world through British eyes. There is a fairly hefty annual fee to subscribe to the EIU – if you have a significant international operation, it is worth it. However, if you are a small or occasional exporter, your local public or university/community college library will let you have access at no cost.
  2. Country Commercial Guide: The Country Commercial Guide is produced by the US Commercial Service and is available at no cost to the public through www.export.gov. Updated annually, the Guides give an overview of the political and economic environment, tips on doing business in the country, trade regulations and investment climate in more than 150 countries and areas. The sections on trade regulations and investment climate can alert you to any impending changes in rules of commerce. Produced at US embassies and consulates around the world, the CCG also draws on the knowledge of the local employees of the Embassy, so the tips on doing business are generally right on. You should download and keep in your online library a  PDF copy of the most recent CCG for every country that you to which you are currently or planning to ship.
  3. Country Fact Sheets: The US Department of State produces and regularly updates a Fact Sheet on each country. It outlines the positives (and sometimes the negatives) on every country or area around the world. Want to know what the official line is – check it out at www.state.gov.

We all know exporting is profitable – you can keep it so by keeping abreast of that latest in your overseas markets with a fifteen-minute read of these online resources!

 

Three Books For Your Bookshelf on International Business

international

Yes, I know this is the age of the digital book. But there is still room to have a few essential books within reach. Besides the pleasure of having a physical book with an index page that you can scan with one glance, there is the other recognition that Mr. Google doesn’t always give you the right answers. So, I recommend that professionals in international business keep these three books on their shelves behind their desks:

Kiss Bow or Shake Hands by Terri Morrison and Wayne Conaway (Adams Media 2005).

This is the bible for anyone in international business. The book lists business etiquette for more than 60 countries. A typical chapter includes information on history, politics, business culture, protocol and negotiating styles. This will help you understand where your business partner is coming from and why they do the “crazy” things they do. More importantly, it will help avoid making major gaffes. I remember the instructor I had in protocol when I joined the US State Department saying “A good diplomat is never unintentionally rude.” The same is true for a businessperson – you should always be the welcoming and correct partner.
Is this foolproof? No, there are always subtleties to another culture that just can’t be summarized in a book. But I’ve read closely the countries where I have lived or work and the information is pretty much right on.

Dictionary of International Trade by Edward G. Hinkelman, (World Trade Press 2010)

This is another essential book to have around. It not only defines commonly used INCO terms, it has information on topics like:
• Shipping information (air and sea)
• Documentation requirements
• International standards (ISO’s)
• Security requirements by country
• Key terms and words in eight languages
• Resources for shippers, and
• Much more
The Dictionary should be in every shipping office of every company.

The Little Red Book of China Business by Sheila Melvin, 2007, (Sourcebooks, Inc.).

As the Chinese market continues to open up in the West, the opportunities for you and your business are endless. But so are the opportunities for making the wrong move, saying the wrong thing and unknowingly jeopardizing your business in this market. I recommend The Little Red Book of China Business because it provides a unique approach to understanding the Chinese business culture by unlocking an essential key: The current generation of Chinese businesspeople grew up with the lessons and teaching of Mao’s Little Red Book, and these lessons guide their action in business and culture. If you don’t understand Mao and the Little Red Book, you don’t understand China business.
Sheila Melvin walks you through the key lessons of the Little Red Book, unlocking business and strategy secrets along the way. There are a number of books on doing business in China, but this one is unique in making the complex world view of the Chinese businessperson understandable to us in America.

— Chris Lynch

Getting the most out of international trade shows

international

Trade shows take on a much larger importance in international business. Not only can you meet prospects but it is the one place where you can meet customers from around the world. Here’s my recent article in the February 2013 edition Export Magazine from the Riverside County Office of Foreign Trade (see pages 10-11)

John W was seething behind his booth at the US pavilion at the massive CEBIT expo in Hannover. “No one is coming by my booth. Coming here has been a complete waste of my time and money.”

I was the US Consul General in Hamburg and John was directing his complaints at me as an American official. “I’m not getting the leads I was promised.” Now I knew that the US Commercial Service never promised him specific leads when he signed up for the booth but I listened to his story. He had shown up the day before the event, his marketing collateral was tied up in customs and he was behind the booth all day waiting for customers. He was so tired that he skipped all the evening networking events.

John made many common mistakes that led to his poor results. Here are five tips to avoid those pitfalls and get the most out of a trade show:

1. Set Your Goals. You should think about your ideal customers and identify the best shows to reach them. www.export.gov, the US government website to help exporters, has a list of trade shows and resources and your local Commercial Service office can also advise you.

2. Assess Your Participation Level. You have many options – go to the show as an attendee, participate in the US pavilion or have your own space. You can also sponsor events or have special advertising in the catalog or the show website.

3. Make Sure You Have the Appropriate Look. The show will have specifications on display size and content but make sure your follow the guidelines, particularly for shipping. (Hint: use a professional freight forwarder for trade booths – it is worth the extra cost.) Also bring along LOTS of business cards!

4. Map Out Your Strategy. Don’t spend your time behind the booth. and don’t wait for visitors to come to you. Figure out a strategy to visit all of the relevant booths (particularly in the mega-shows like CEBIT with dozens of pavilions). Set up appointments in advance.

5. Build Relationships. Don’t be a wall flower – attend the evening social events, even if you are bone tired. Also be a respectful visitor – learn phrases for welcome, please and thank you. (Resource tip: “Kiss, Bow or Shake Hands” by Terri Morrison has business etiquette for more than 60 countries.)

So don’t be like John and lose out on an important market development opportunity. Do attend those trade shows but plan ahead of time to reach the right customers!

by Chris Lynch